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FEATURE: MALL INCOME GENERATION
Christmas
SPECIAL
The long-term impact of the economic crisis remains relatively unknown. However,
shopping centre commercialisation in the run-up to Christmas has revealed a more
positive outlook from brands and retailers
T
his time last year, the UK retail market was in turmoil. This is obviously great for the centres and great for us – we’ve been
Future plans became uncertain, shoppers reined in their more organised as well in helping owners generate income.”
spending and weaker retailers went into administration. Roy Wade, who heads up Promotion Space Group’s RMU division,
Twelve months on, the impact of recession has changed the agrees that RMUs are still a strong component of shopping centre
outlook of landlords and retailers. Commercialisation over the commercialisation. “We’re coming out of a bad time, but we’ve
upcoming Christmas period is a good indicator of where retailers seen high occupancy levels throughout the year,” he af_f_i rms. Wade
see themselves now, and the current level of confi dence as insists that outsourcing RMU programmes is a must if centres want
Britain enters the fi nal quarter of 2009. to make the most of commercialisation opportunities. “Venues
Retail merchandising units (RMUs) are a mainstay of shopping outsource because they’re looking for expertise. Gone are the
centre commercialisation, particularly at Christmas. As Clare Andrew, days when RMUs were simply add-ons – now they are far more
managing director of Shoppertainment, puts it: “They bring festivity sophisticated,” he says.
into the mall. RMUs tend to be occupied by small businesses that Brandspace, a division of Promotion Space Group, recently won
can’t af_f ord a big unit, but their products are unique and a bit special. exclusive commercialisation rights to manage all promotional retail
They sell things like candles, jewellery and Christmas gifts, which can space at St David’s in Cardif_f . Having set up eight RMUs in the new
be more expensive but shoppers don’t normally mind paying extra centre, Wade is keen to stress their design and visual appeal.
when things are a little bit dif_f erent.” “We’ve got glass display towers which look fantastic on the mall,”
he says. “Obviously there’s a need for functionality, but new design is
just as important. Right now we’ve got regional traders on the RMUs,
“Gone are the days when RMUs
but the designs have prompted interest from in-line retailers at St
David’s.”
were simpy add-ons - now they
And according to Iain Bell, commercial development manager at
The Mall, the role of RMUs within shopping centres is crucial. “They
are far more sophisticated”
give shoppers a breadth of choice,” declares Bell, who manages
The Mall’s 140 RMUs. “It’s about getting the balance right between
national and local businesses in a centre. We actively encourage
RMUs to change their products and keep things seasonal to match
Alongside the obvious advantage of rental income, a range what shoppers want to see. Right now they are providing things
of RMUs selling one-of_f products gives each centre a point of for winter and Christmas. More new products in a centre adds
dif_f erence; something Andrew feels is crucial. “There’s no point in dif_f erence,” he concludes.
having every town and shopping centre looking exactly the same. Like Andrew, Bell identifi es small businesses as those most likely
RMUs give shoppers lots of dif_f erent things to look at as they wander to take up an RMU because they see it as an opportunity to test their
about, which gives them a better experience and keeps them products in a suitable location. “It’s a low risk way of starting out in
coming back to the centre,” she argues. retail,” adds Bell.
But with the ef_f ects of recession still lingering, just how many Although competition between RMUs and big units in a centre
small businesses are investing money into leasing RMUs? “All our has been a long-running issue, it seems managers are putting more
units have been booked for the Christmas period. In this last quarter, ef_f ort in to ensure that RMUs are distinct from the centre’s tenant
things have really started looking up,” asserts Andrew. “Across the mix. Andrew and Bell focus on having RMUs that complement
board, companies are better organised for Christmas because they existing retailers and don’t duplicate items already available in the
realise they need to help themselves by promoting and marketing. centre’s stores.
SHOPPING CENTRE November 2009 www.shopping-centre.co.uk
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